The anonymous employee worked in the Apple TV group. This person says the major problem for Apple is that it can't secure content for its Apple TV. Apple can't get its hands on "first-tier TV network programs for an à la carte iTunes TV service," says Martin, citing sources.

As for the physical television, Martin says Apple is looking at a 42 inch screen. We've heard a variety of reports on the size of the TV. This makes the most sense it's it's not too big and not too small.

One other thing of note in Martin's report: analyst Paul Gagnon of DisplaySearch, which tracks the television supply chain says he hasn't heard anything about Apple buying displays, so he doesn't think an Apple TV is coming this year.